Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership

Established in 2003 as a Public-Private Partnership (PPP) covering vaccine research and development, manufacturing and supply, the Biovac Institute has grown from an initial base of 24 staff and a revenue of R188 million to an organisation of 250 people and an annual revenue of R1.8 billion (as of J...

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Main Authors: David R. Walwyn, Adolph T. Nkolele
Format: Article
Language:English
Published: AOSIS 2018-08-01
Series:South African Family Practice
Subjects:
Online Access:https://safpj.co.za/index.php/safpj/article/view/4896
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author David R. Walwyn
Adolph T. Nkolele
author_facet David R. Walwyn
Adolph T. Nkolele
author_sort David R. Walwyn
collection DOAJ
description Established in 2003 as a Public-Private Partnership (PPP) covering vaccine research and development, manufacturing and supply, the Biovac Institute has grown from an initial base of 24 staff and a revenue of R188 million to an organisation of 250 people and an annual revenue of R1.8 billion (as of January 2018). The institute earns a premium on the procurement cost of a broad range of vaccines required by the National Department of Health (NDoH), the net value of which reached R1.14 billion over the period 2010–2014 and was used to finance the institute’s operations, including vaccine distribution and quality control. In this study, we have evaluated the value-for-money of the partnership within a context of tension between health and industrial policy. According to the respondents in the qualitative survey, its principal benefit has been the uninterrupted supply of vaccine and the ability to respond quickly to vaccine shortages. The main disadvantages appear to have been the slow establishment of vaccine manufacturing, and initially a limited ability to negotiate highly competitive vaccine prices. Overall, it is concluded that the institute has delivered value-for-money and met the objectives of both industrial and health policy. However, the experience appears not to have convinced the NDoH of the value of such initiatives.
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spelling doaj-art-b226ad9d12ed4b54b620fcb46c89d56e2025-08-20T03:43:46ZengAOSISSouth African Family Practice2078-61902078-62042018-08-01604425110.4102/safp.v60i4.48963873Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private PartnershipDavid R. Walwyn0Adolph T. Nkolele1University of PretoriaUniversity of PretoriaEstablished in 2003 as a Public-Private Partnership (PPP) covering vaccine research and development, manufacturing and supply, the Biovac Institute has grown from an initial base of 24 staff and a revenue of R188 million to an organisation of 250 people and an annual revenue of R1.8 billion (as of January 2018). The institute earns a premium on the procurement cost of a broad range of vaccines required by the National Department of Health (NDoH), the net value of which reached R1.14 billion over the period 2010–2014 and was used to finance the institute’s operations, including vaccine distribution and quality control. In this study, we have evaluated the value-for-money of the partnership within a context of tension between health and industrial policy. According to the respondents in the qualitative survey, its principal benefit has been the uninterrupted supply of vaccine and the ability to respond quickly to vaccine shortages. The main disadvantages appear to have been the slow establishment of vaccine manufacturing, and initially a limited ability to negotiate highly competitive vaccine prices. Overall, it is concluded that the institute has delivered value-for-money and met the objectives of both industrial and health policy. However, the experience appears not to have convinced the NDoH of the value of such initiatives.https://safpj.co.za/index.php/safpj/article/view/4896vaccinespublic private partnershipcost-benefit analysislocal manufacturehealth security
spellingShingle David R. Walwyn
Adolph T. Nkolele
Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership
South African Family Practice
vaccines
public private partnership
cost-benefit analysis
local manufacture
health security
title Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership
title_full Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership
title_fullStr Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership
title_full_unstemmed Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership
title_short Coordinating Health and Industrial Policy in South Africa; A Case Study of the Vaccine Public-Private Partnership
title_sort coordinating health and industrial policy in south africa a case study of the vaccine public private partnership
topic vaccines
public private partnership
cost-benefit analysis
local manufacture
health security
url https://safpj.co.za/index.php/safpj/article/view/4896
work_keys_str_mv AT davidrwalwyn coordinatinghealthandindustrialpolicyinsouthafricaacasestudyofthevaccinepublicprivatepartnership
AT adolphtnkolele coordinatinghealthandindustrialpolicyinsouthafricaacasestudyofthevaccinepublicprivatepartnership